Questions tagged [ipo]

For personal finance questions related to a company's Initial Public Offering (IPO).

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-1 votes
1 answer
78 views

The listing price of a stock

I was creating python model of hypothetical stock with market cap MC having S outstanding shares whose current price is CP. the intention was to create a chart for technical analysis and understand ...
0 votes
0 answers
29 views

Received stock in trade for LLC units as part of an IPO. How to report paper gain?

USA taxpayer. An LLC in which I had units IPOed. I chose to have some of the units converted into stock instead of receiving cash. (Yeah, didn't expect tech implosion, but that doesn't matter for this....
-1 votes
2 answers
121 views

What is the thinking behind letting unprofitable corporates list on an exchange?

I read somewhere that 2021 set a record in terms of the number of unprofitable new listings on the exchanges (revenue but no earnings). To verify, I looked up some of the listing requirements and saw ...
1 vote
1 answer
102 views

How does one trade IPO stock on the first day of trade?

As one cannot get into IPO before it does public, how can one trade IPO stock on the first day of trading? I understand one can place orders in a public market. But trading in a public market on the ...
0 votes
2 answers
143 views

What is ipo issue size and how they decide ipo issue size

What is IPO issue size? How they decide IPO issue size? I am asking about IPO issue size like 5000 cr. How they decide this size and what can be maximum IPO issue size? Not IPO share price.
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1 vote
1 answer
124 views

Why does IPO share price decrease?

Assume that I subscribe to an IPO at 1000rs and when it begins trading, its price decreases because IPO subscribers are selling the stock. Why do they subscribe if they're going to sell at a lower ...
  • 55
-1 votes
1 answer
45 views

Minimum hold period for initial investors in IPO

Back in 2020 I had some stocks that used to be SPACs and watched their value plummet over a span of a few days as the initial investors were allowed to sell, because their initial required holding ...
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0 votes
1 answer
61 views

How do early-stage share prices of companies going public via SPAC change?

I currently have a number of series C, non-voting shares (< 1000) in a company that would go public via SPAC on this Monday. Since the price of each unit of SPAC is always price at $10 per unit for ...
3 votes
0 answers
68 views

How can I know if some of the money in my bank account is blocked and not available for withdrawal?

I am a resident of India and have a savings account opened with HDFC bank. Recently I applied for an IPO for which INR 14K were blocked from my account. The IPO was not allotted to me and hence the ...
1 vote
1 answer
106 views

How to research a company which is going public before making an investing decision?

New companies being listed on stock market don't often have lot of data in public domain. Other than some big names like AirBnb, Doordash, most of the companies are not well known. In this case what ...
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0 votes
1 answer
74 views

Do low interest rates reduce the growth perspectives after IPOs?

My reasoning is this: A company goes public to raise capital at the price of giving up a certain amount of power and control to the shareholders. Now, if someone founds a company and can borrow risk ...
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1 vote
0 answers
110 views

Why do companies need to file form 8A?

I currently follow a company (DTST) in progress to be listed on the Nasdaq Capital Market (previously traded on the OTC). After filling the S1 report with multiple amendments, they also recently filed ...
38 votes
12 answers
18k views

I bought my first shares in life and they dropped 25% in a very short time. What to do?

I bought Coinbase stocks shortly after IPO. Now my loss at 25%, however, I am in the fortunate position of not being dependent on the invested money. I would like to know in retrospect what I and ...
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2 votes
2 answers
406 views

How do I make shares post-IPO liquid?

I have an option grant I exercised at a pre-IPO company through Carta.com, which shows I have X shares in the company of Common Stock. The company IPO'd. I didn't sign a lock-up agreement although was ...
1 vote
2 answers
443 views

What happens when this company goes from the OTC to NYSE?

Agiliti Inc. (OTCMKTS: AGLY) is trading in the over-the-counter market right now and it will be listed on the NYSE very soon. What is the price reaction of this stock on the IPO day? Will the price on ...
1 vote
2 answers
60 views

Are all investors subject to lock-up period during the IPO?

The company receives its full funding amount during the IPO, where it sells its shares to institutional investors. Let's say it sold 1 million shares. Then, when the shares start trading on the ...
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4 votes
1 answer
106 views

Why is money for SPAC raised even before they have found a potential company to merge with?

From what I have understood, A SPAC shell co. is setup and raises funds through an ipo thereby getting a period of 2 years to find a company they can merge with. Is there a specific reason that it ...
1 vote
1 answer
106 views

How can charges against company surplus be used to reduce a goodwill account?

I am presently reading the second edition of Security Analysis by Benjamin Graham. In chapter 29, "The Dividend Factor in Common-Stock Analysis", to illustrate the relationship between ...
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1 vote
1 answer
423 views

How to find out the IPO lockup period?

Is there a way to find out the IPO lockup period of a recent public company? Could I find this information in the S1 document? If so, where exactly should I look for in the S1 document?
0 votes
2 answers
157 views

To the employer, is equity more or less expensive than payroll?

I work for a company that compensates employees with low base salary and a bit higher than average equity. My question is, how much more expensive is paying an employee equity vs standard salary? How ...
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0 votes
2 answers
71 views

Why must an investment bank underwrite an IPO, not a company's finance department led by the CFO?

Isn't it merely an interaction with a bureaucracy like say.. renewing your passport or getting an apostille on a document? Sure, you can go through a third-party, but you can also do them yourself (...
1 vote
2 answers
79 views

Could I buy shares of upcoming NASDAQ IPOs at their offer price? For example: The upcoming Roblox IPO in 2021. If so, how?

This is intended for me: a regular 30 yr old guy who works 9-5, and has a middle class income. Please describe well. I am nearly a complete noob. I know a little though. Also I am from Canada.
0 votes
1 answer
73 views

What are the different kinds of IPOs?

I recently tried to witness an Initial Public Offering on a trading platform. What struck me is that it seemed to be different according to who the investors were. Indeed, at the time some newspaper ...
15 votes
7 answers
4k views

Why would a company prevent their employees from selling their pre-IPO equity?

I have heard and read that some non-publicly traded companies prevent their employees from selling their pre-IPO equity. Why would they have such a policy? For example, from How to Sell Private ...
0 votes
1 answer
37 views

Is there a Central Place where IPOs are announced [closed]

I wish to buy several companies when they have initial public offering (IPO). Instead of doing google, where is a central website that announces IPOs of companies?
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3 votes
1 answer
444 views

Is this absurd stat a very unique (w.r.t the point in time in which it was calculated)? If not, are there people who do it?

Reading The Intelligent Investor I came across the following fact which was mind-blowing to me: Finance professors Jay Ritter and William Schwert have shown that if you had spread a total of only $1,...
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-4 votes
2 answers
219 views

Why did Berkshire Hathaway have an IPO starting at $7000+? [closed]

Or in other words how is IPO value determined?
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0 votes
2 answers
40 views

When company issues new share to the public at IPO, is its issued/offered price based on Book value per share?

Since it goes public for the first time, there's no market price available to be considered for offers.
1 vote
2 answers
617 views

How does company issue more shares after IPO? Does it issue new shares at the market value or book value per share?

1.Take Facebook as an example, it debuted with 421 million shares at IPO and now it has 2.8 billion shares. It hasn't made any stock split since IPO so does its number of shares outstanding increase ...
1 vote
1 answer
83 views

The optimal strategy for buying stocks at the IPO

When the company makes the initial public offering (IPO) the prices of stocks in the first days are usually more volatile in average, than for the established business. In the book The Intelligent ...
-5 votes
3 answers
282 views

Can I raise money in an IPO of my house?

I am thinking of getting some cash by selling shares of my house. Can I sell shares of my house in an IPO to raise some cash for myself? It would be super cool to ring the opening bell during the IPO ...
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1 vote
0 answers
34 views

What are the differences between IPO and Direct Listing, esp for employees?

If a pre-IPO company is evaluating whether they should go IPO or Direct Listing, how would either option affect employees? Let's say the employees have some combination of NSO, ISO, RSU. IPO may be a ...
3 votes
1 answer
259 views

Why can't I buy stocks during the beginning of an IPO at 9:30am? [duplicate]

I just noticed that I could not buy stocks of an IPO during the beginning to the trade at 9:30am. I tried NYSE:AMWL this morning. I can only buy the stock of an IPO several hours later. Does anyone ...
0 votes
2 answers
147 views

How does stock exchange affect the company? [duplicate]

People invest in the company initially using an IPO. Now I don't understand how trading the stocks with others (who didn't participate in the IPO) would benefit the company. Also, why do the people ...
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3 votes
1 answer
190 views

What is a confidential IPO and how do you participate in it?

What is a confidential IPO and is general public allowed to participate in it? Lately there have been a lot of confidential IPOs. A recent example being the Duck Creek Technologies IPO. I try to ...
  • 159
6 votes
6 answers
4k views

Does an IPO mean a company is going public or is already public?

I know that an IPO means that a particular company, regardless of the country, is offering some quantity of their stocks to the public via the stock exchange. I also assume (but not sure) that if they ...
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2 votes
1 answer
142 views

Where can the founder of a company sell his stocks?

Let's assume that we have a tech company that wants to go public. In its IPO, the founder of the company wants to get $10 millions for 10% percent of the company. Those $10 millions will be ...
2 votes
1 answer
416 views

How does a company earn money from going IPO and being on the stock exchange? [duplicate]

Please clarify if I understand the process of a company going IPO and selling shares on the stock market. A company goes IPO, and starts of with selling 1 million shares on an exchange. Sets the ...
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1 vote
2 answers
101 views

IPO Lock up trade

I have a question regarding how to benefit from major price movements after the end of a lock-up period post IPO. I have seen that in many cases there are no extraordinary movements in the prices in ...
0 votes
1 answer
55 views

ARAMCO's financial statements [closed]

Can anybody explain me how come that ARAMCOS financial reports are available to the public while its not publicly traded company. Thank you!
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15 votes
3 answers
6k views

How do companies get money from being listed publicly? [duplicate]

How do companies get their money from being on the stock market? I understand the reason a company will list is to raise capital. Who gives them this money? The stock market is between buyers and ...
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2 votes
0 answers
134 views

How can a single unit of a business be worth more than its entire market cap?

As of today, June 26th 2019, Thyssenkrupp AG has a market cap of approximately 7.3 billion euros. On May 10th 2019, Thyssenkrupp AG announced that it will take its elevator business public in an IPO. ...
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0 votes
1 answer
52 views

Are shares from a direct listing available as soon as markets open?

I’ve noticed in conventional IPOs that some companies’ trading data doesn’t start showing up until the early afternoon on the day they go public. Looking back at Zoom (ZM) for example I’m now able to ...
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0 votes
0 answers
44 views

Are IPO lockup shares counted when calculating eps?

For example, Company XYZ has an IPO on January 1st They offer 10 million shares 90 million shares are still held by insiders The lockup lasts until June 1st They report earnings of $100m for Q1 on ...
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0 votes
1 answer
73 views

SEC institutional pre-IPO disclosure

All funds/managers with assets above 100M need to file their holdings with the SEC in the form of a 13F. like this one for example : https://sec.report/Document/0001567619-19-011051 There is a column ...
-1 votes
1 answer
177 views

Buy pre ipo'd start up company stock in small amount? [closed]

Is there any investment website/company through which I can buy small amounts of pre-PIOed company stock in a smaller amount? Most require $100K worth of investment. e.g. as an average investor can ...
3 votes
2 answers
1k views

Can an IPO be cancelled if not successful?

Let's say the Company C goes public using a Fixed Price Offering. It emits 10000 shares at 10 euros per share. What happens if investors only subscribe to, let's say, 789 shares. That gives a ...
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4 votes
1 answer
137 views

How can I establish myself to be an "accredited investor" relative to an IPO?

A US company with which I have an affiliation (I'm not an employee; I don't think the specifics of our relationship are relevant here) is preparing an IPO and there is a directed share program for a ...
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2 votes
1 answer
999 views

What happens on the NYSE during an IPO such that the first trade may be hours after the opening bell?

So, I understand that today's Spotify IPO isn't a traditional IPO. But I think my question extends beyond this. At about 12:45pm today, shares of Spotify finally started trading on NYSE. Opening bell ...
5 votes
1 answer
1k views

If I earn RSUs in a private company while living in California, and am no longer employed with the company at IPO, do I owe California taxes?

I'm employed at a private company in San Francisco. Part of my compensation is in RSUs, which are subject to the standard two vesting conditions for startup company stock: time, and the occurrence of ...